Meritage Reports 2023 Full-Year Preliminary Results; 2024 Outlook: Accelerated Earnings Growth

GRAND RAPIDS, Mich., Feb. 20, 2024 (GLOBE NEWSWIRE) --  Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise restaurant operator, today reported preliminary financial results for the fiscal year ended December 31, 2023.

2023 Fourth Quarter Highlights:

• Sales increased 5.3% to $167.9 million compared to sales of $159.4 million for the same period last year.
• Earnings from Operations increased 486.5% to $4.8 million compared to $0.8 million for the same period last year.       
• Net Income was $1.6 million compared to a (loss) of $(0.70) million for the same period last year.
• Consolidated EBITDA (a non-GAAP measure) increased 104% to $9.7 million compared to $4.8 million for the same period last year.

2023 Full-Year Highlights:

• Sales increased 7.4% to a record $672.5 million compared to $626.0 million last year.
• Earnings from Operations increased 27.4% to $17.8 million compared to $14.0 million last year.       
• Net Earnings were $6.0 million compared to $9.1 million last year.
• Consolidated EBITDA (a non-GAAP measure) increased 6.6%to $38.9 million compared to $36.5 million last year.
• The Company ended the year with 388 restaurants located across 16 states.
  

“Company sales grew $46.5 million in 2023 to a record $672.5 million highlighting the strength and resilience of the Wendy’s restaurant brand. Our restaurant operations and real estate development teams continued to execute at a best-in-class standard, supported by our unique operating and technology platforms,” stated Meritage CEO, Robert E. Schermer, Jr.

Looking ahead, the Company is forecasting strong earnings growth for fiscal 2024, driven by operating margin improvements as commodity and labor inflation continues to ease. Our new Wendy’s buildings include modernized technology and delivery options designed to improve the customer experience and employee efficiency. We have a strong development pipeline of locations for modernization and new store openings planned throughout the year.

2024 Full-Year Outlook: Accelerating Earnings Growth:

• Sales growth of +5% to +10%
• Earnings from Operations growth of +65% to +75%
• Net Earnings growth of +145% to +155%
• EBITDA growth of +30% to +40%
• Common stock dividend growth +40% to +50%
  

The Company is focused on leveraging its robust operating platform and unique in-house restaurant development expertise to deliver consumers the highest level of quality, convenience, and affordability.

As we plan for the next generation of growth and new capital partners, we remain actively engaged in planning for future strategic events to enhance shareholder value and liquidity.

About the Company:

Meritage Hospitality Group is the nation’s premier restaurant operators, currently with 388 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 12,000 employees. At fiscal year-end 2023, the Company had total weighted average fully diluted common shares outstanding of 8,263,840.

The Company’s current and publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at www.otcmarkets.com, under the stock symbol MHGU/Disclosures or the Company’s website, www.meritagehospitality.com.
                                 

SAFE HARBOR STATEMENT
Certain information in this new release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company’s Safe Harbor Statement at http://www.meritagehospitality.com.

CONTACT:
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
(616) 776-2600